UK Self Assessment Tax Return Filing and Penalties

2014/15 Tax Returns

The end of the UK tax year for 2014/15 was 5 April 2015 and taxpayers need to consider completing and filing their Tax Returns for this year.

Tax Returns usually need to be filed with HM Revenue and Customs (HMRC) by 31 January following the end of the tax year if you file on-line (or by 31 October following the end of the tax year if you file a hard copy paper Tax Return).

Therefore, the 2014/15 Tax Return needs to be filed by 31 January 2016 if filed on-line or by 31 October 2015, if filed in hard copy paper format.

If you are late in registering to file a Self Assessment Tax Return, the deadline is extended and the Return needs to be filed within 3 months from the date it is issued.

2013/14 Tax Returns

Heavy HMRC penalties kick in soon for those individuals that have not yet filed their 2013/14 Self Assessment Tax Returns.

Anyone whose 2013/14 Self Assessment Tax Return is more than three months late (i.e. not filed by 30 April 2015) will be charged a further £10 penalty for each day it remains outstanding, up to a maximum of 90 days, so up to a maximum of £900. This is in addition to the automatic £100 late-filing penalty that will already apply.

Looking ahead, further penalties of at least £300 (or 5 per cent of the tax shown as due on the Tax Return, if this is more) will be levied for Returns that are six and twelve months late.

Tax for the 2013/14 year should normally have been paid by 31 January 2016 and there are also the following late payment penalties to consider if payment is not made on time:

Payment 30 days late – penalty of 5% of the tax unpaid at that date

Payment 6 months late – a further 5% of the tax unpaid at that date

Payment 12 months late – a further 5% of the tax unpaid at that date

Anyone who has not yet filed their 2013/14 Tax Return can contact us on an urgent basis to discuss their options. It may be possible to file the necessary Return initially on an estimated basis to avoid certain penalties, or even have the Tax Return cancelled if you can argue that “Self Assessment” should not apply in your case.

Failure to notify

If you have a new source of income or a capital gain, etc. on which there is a tax liability, you are required to notify HMRC by 5 October following the end of the tax year in which the income/gain arose, so by 5 October 2015 for 2014/15 Tax Return filing purposes.

If you fail to do this, penalties can apply based on the tax due and the amount unpaid at the due date which is usually 31 January following the end of the tax year, so 31 January 2016 for 2014/15 Tax Return filing purposes. The amount of the penalty charged will depend on your circumstances and how cooperative you are in terms of bringing your affairs up to date.

Contact us

If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 orcustomerservice@taxinnovations.com.

On 15 May 2018, the EU reinstated State Aid Approval for the Enterprise Management Incentive (EMI) Scheme, which had lapsed on 6 April 2018. This means that EMI options granted to employees will once again receive a beneficial tax treatment.